Core Insights - The declining birthrate in Japan is leading to a significant shortfall in enrollment at private universities, with 53% of these institutions failing to meet their enrollment targets [1] - Private universities heavily rely on tuition fees for operational income, which has resulted in widespread financial difficulties due to the enrollment gap [1] - Approximately 20% of universities are now considering the "hometown tax" as a new source of revenue support [1] Enrollment Challenges - In the 2025 academic year, Japan will have 179 national and public universities, while the number of private universities will reach 607 [1] - A survey from the 2022 academic year indicated that private universities generated total revenues of approximately 3.6 trillion yen, with 77% coming from student fees, 11% from government subsidies, and only 2% from donations [1] Financial Strategies - The "hometown tax" is being increasingly recognized by universities as a potential funding source, particularly the portion allocated for "university support" [1] - For instance, Tottori Nursing University and Tottori Junior College, which are operated by the same entity, have seen a cumulative decrease of 66 million yen in tuition revenue over the past six years, representing 6% of their annual income [1] - As of 2024, these institutions have received 17 million yen in subsidies through the "hometown tax" policy [1] Government Perspective - The Japanese Ministry of Education, Culture, Sports, Science and Technology acknowledges the need for private universities to diversify their funding sources in light of the declining birthrate, supporting the implementation of the "hometown tax" as a viable option [2]